Kellie Curry Raper, H. Alan Love, and C. Richard Shumway, "Determining Market Power Exertion Between Buyers and Sellers", Journal of Applied Econometrics, Vol. 15, No. 3, 2000, pp. 311-330. There are three program files and 23 data files. The program files are zipped in the file rls-progs.zip, and the data files are zipped in the file rls-data.zip. All files are in DOS format. Unix users should use "unzip -a" to convert to Unix format. The data are organized in 3 steps. All data are annual for 1977-1993. (1) U.S. TOBACCO PRODUCTION COST DATA Program File: flextp.sha This Shazam 6.2 file reads the following 5 data sets (usprod2.rls, ballky.rls, ballnc.rls, fluedat.rls, burdat.rls) and transforms the data into a set of production cost data for U.S. domestic tobacco production through aggregation. The output from this program is tobprod.rls. DATA FILES: usprod2.rls: U.S. tobacco production data taken from USDA Tobacco Situation and Outlook Acreage, Yield and Price for U.S. Flue-cured, Burley, and Maryland tobacco Variables: yr fcacr fcyld fcp bacr byld bp macr myld mp fcacr Acres planted to flue-cured tobacco (1000's) fcyld Average yield per acre for flue-cured tobacco (lbs.) fcp Average annual price per pound for flue-cured (cents/lb.) bacr Acres planted to burley tobacco (1000's) byld Average yield per acre for burley tobacco (lbs.) bcp Average annual price per pound for burley (cents/lb.) macr Acres planted to Maryland tobacco (1000's) myld Average yield per acre for Maryland tobacco (lbs.) mcp Average annual price per pound for Maryland tobacco (cents/lb.) ballky.rls: State level data for Kentucky (Source: Eldon Ball, state level agricultural productivity data) Variables: st yr plabky pcapky pmatky st State identification code yr year plabky labor implicit price for Kentucky pcapky capital implicit price for Kentucky pmatky materials implicit price for Kentucky ballnc.rls: State level data for North Carolina (Source: Eldon Ball, state level agricultural productivity data) Variables: st yr plabnc pcapnc pmatnc st State identification code yr year plabnc labor implicit price for North Carolina pcapnc capital implicit price for North Carolina pmatnc materials implicit price for North Carolina fluedat.rls: Estimated Cost of production for flue-cured tobacco. Source: USDA Tobacco Situation and Outlook Reported in $/100 lbs of tobacco produced. Variables: yr fclabc fcother fcCLQ fclabc labor cost fcother non-labor, non-capital/land/quota inputs fcCLQ capital/land/quota cost burdat.rls: Estimated Cost of production for Burley tobacco. Source: USDA Tobacco Situation and Outlook Reported in $/100 lbs of tobacco produced. Variables: yr blabc bother bCLQ blabc labor cost bother non-labor, non-capital/land/quota inputs bCLQ capital/land/quota cost (2) CIGARETTE MANUFACTURERS' PRODUCTION AND COST DATA Program File: flexcm.sha This Shazam 6.2 file reads the following 10 data sets (ustob.rls, cigpq.rls, orient.rls, fluens.rls, burleyns.rls, flue.rls, burleyst.rls, stemmed.rls, scrap.rls, cmcost.rls), creates aggregate variables for output and for imported tobacco purchases, and transforms the data into cigarette manufacturer's data set, including cigarette output, domestic and imported tobacco purchases, labor, material, advertising, and capital. The output from this program is tobpfx.rls and tobqfx.rls. USTOB.rls: U.S. cigarette manufacturers' purchases of domestic tobacco (in processed weight, million pounds) from USDA Tobacco Situation and Outlook Variables: yr usfnq usbnq usmnq usfnp usbnp usmnp usfnq flue-cured tobacco purchases usbnq burley tobacco purchases usmnq Maryland tobacco purchases usfnp flue-cured tobacco price (cents per lb.) usbnp burley tobacco price (cents per lb.) usmnp Maryland tobacco price (cents per lb.) cigpq.rls: U.S. Cigarette production and price information from Tobacco Situation and Outlook, various issues. Variables: yr zk zel zft zs ys yk yel et zk billions of king cigarettes zel billions of extra long cigarettes zft billions of filter tip cigarettes zs billions of standard cigarettes ys price per thousand of standard cigarettes yk price per thousand of king cigarettes yft price per thousand of filter tip cigarettes yel price per thousand of extra long cigarettes et excise tax per thousand cigarettes cmcost.rls: Labor, material, advertising, and capital price and quantity data for cigarette manufacturers. Advertising expenditures are taken from Tobacco Situation and Outlook. Advertising price index is taken from Advertising Age. Total employees, labor compensation, cost of materials, annual manufacturing capacity, and cost of capital are taken from U.S. Census of Manufacturers. PPI is taken from U.S. Bureau of Labor. Variables: yr adv pa emp comp mcost PPI captot capcost adv Advertising expenditures ($1000) Pa Advertising price index emp Total employees (1000) comp total labor compensation (million $'s) mcost cost of materials, excluding tobacco (million $'s) PPI Producer Price Index for cost of containers captot annual manufacturing capacity (billion cigarettes) capcost Cost of capital (million $'s) The following 7 files contain quantity and import unit value data on tobacco imported to the U.S. for 7 categories. Codes are consistent throughout the 7 files and are listed below: Country code: c Canada i Italy m Mexico b Brazil k Korea t Turkey g Greece y Yugoslavia bu Bulgaria gu Guatemala p Philippines o Other countries tot Total Tobacco type: o Oriental fn Flue-cured nonstemmed bn Burley nonstemmed f Flue-cured, stemmed b Burley, stemmed st Stemmed, other sc Scrap Price and Quantity: q Quantity imported p Import unit value, Cost, insurance and freight (CIF) Variable names are organized as [country, type, quantity or price]. Example: boq is Oriental tobacco quantity imported from Bulgaria. Details for Oriental tobacco imports are given below as an example. Orient.rls: Import data on oriental tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). Variables: yr coq ioq moq boq koq toq goq yoq buoq guoq poq ooq totoq cov iov mov bov kov tov gov yov buov guov pov oov totov coq Quantity imported from Canada ioq Quantity imported from Italy moq Quantity imported from Mexico boq Quantity imported from Brazil koq Quantity imported from Korea toq Quantity imported from Turkey goq Quantity imported from Greece yoq Quantity imported from Yugoslavia buoq Quantity imported from Bulgaria guoq Quantity imported from Guatemala poq Quantity imported from Phillipines ooq Quantity imported from Other totoq Total Quantity of Oriental tobacco imported cop Import unit value from Canada iop Import unit value from Italy mop Import unit value from Mexico bop Import unit value from Brazil kop Import unit value from Korea top Import unit value from Turkey gop Import unit value from Greece yop Import unit value from Yugoslavia buop Import unit value from Bulgaria guop Import unit value from Guatemala pop Import unit value from Phillipines oop Import unit value from Other totop Import unit value - All fluens.rls: Import data on flue-cured (nonstemmed) tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) burleyns.rls: Import data on burley (nonstemmed) tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) flue.rls: Import data on flue-cured (stemmed) tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) burleyst.rls: Import data on burley (stemmed) tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) stemmed.rls: Import data on other stemmed tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) scrap.rls: Import data on scrap tobacco, taken from U.S. Department of Commerce's U.S. Imports for Consumption and General Imports: FT246 and FT247. Price is Cost, Insurance and Freight (CIF). (See above discussion for variable names.) (3) FINAL AGGREGATION AND NORMALIZATION OF DATA FOR ESTIMATION. Program File: jaedata2.tsp This TSP 4.4 file reads the following 6 data sets (tax.rls, tobpfx.rls, tobqfx.rls, usprod2.rls, farm.rls, tobprod.rls) and transforms the data into final data sets for estimation. Final input aggregation and normalization is performed in this program. Resulting output is 3 data files (inst.rls, downstrm.rls, and upstrm.rls) for final estimation. tax.rls: Consumer expenditure including excise tax and excise tax are from Tobacco Situation and Outlook. CPI is from Economic Report of the President. Variables: yr qet pet et cpi qet Quantity of cigarettes purchased pet Price index for cigarettes, including excise tax et Excise tax per thousand cigarettes, as reported in TSO cpi Consumer price index tobpfx.rls: Price indices for U.S. cigarette manufacturer's output and input, as generated in flexcm.sha. Variables: yr zdf Pus Pi Pl Pm Pa Pc zdf Cigarette price index Pus Price index for domestic tobacco Pi Price index for imported tobacco Pl Price index for labor Pm Price index for materials Pa Price index for advertising Pc Price index for capital/capacity tobqfx.rls: Quantities for U.S. cigarette manufacturer's output and input, as generated in flexcm.sha. Variables: yr z Qus Qi L M A Cap97 z Cigarette output quantity Qus Quantity of domestic tobacco purchased Qi Quantity of imported tobacco purchased L Quantity of Labor M Quantity of Materials A Quantity of Advertising Cap97 Quantity of Capacity usprod2.rls: U.S. tobacco production data taken from USDA Tobacco Situation and Outlook Acreage, Yield and Price for U.S. Flue-cured, Burley, and Maryland tobacco (Variables same as reported previously for this file.) farm.rls: Manufacturer's domestic purchases in Farm Sales Weight (million pounds) for Flue-Cured,Burley and Maryland tobacco. Farm program quota levels and price supports for Flue-Cured and Burley tobacco (From USDA Tobacco Situation and Outlook). Variables: yr ffsw bfsw mfsw fcquota bquota psupb psupfc ffsw Flue-cured purchases (million pounds) bfsw Burley purchases (million pounds) mfsw Maryland purchases (million pounds) fcquota Farm program marketing quota Flue-cured tobacco (million pounds) bquota Farm program marketing quota Burley tobacco (million pounds) psupb Farm program price support level Burley tobacco (cents/lb.) psupfc Farm program price support level Flue-cured tobacco (cents/lb.) tobprod.rls: Cost of production for U.S. tobacco farmers. File is generated by flextp.sha. Initial data source is Tobacco Situation and Outlook and Eldon Ball's detailed data set on state level agricultural productivity. Variables: yr qlab plab qclq pclq qmat pmat qlab quantity of Labor employed by tobacco producers plab price index for labor constructed from state level labor information from North Carolina and Kentucky qclq "Quantity" of Capital/Land/Quota constructed from cost info for burley and flue-cured tobacco pclq Price of Capital/Land/Quota qmat Quantity of other inputs used by tobacco producers pmat Quantity of other inputs, constructed from state level information on North Carolina and Kentucky qmat Quantity of other materials, such as fertilizer, etc. used in tobacco production pmat Price of Materials constructed from state level information on prices of materials in North Carolina and Kentucky. (4) FINAL DATA SETS AFTER CALCULATING CONSISTENT UNIT, AGGREGATION, AND NORMALIZATION. See jaedata2.tsp for calculations. (TSP 4.4) inst.rls: Instruments used in estimation Variables: yr t tquota Aexp apsup Pi et conp cpi etdiff Pa A Ext t time trend, t=1, 2, .....17 tquota total tobacco marketing quota Aexp Advertising expenditures apsup average price support for U.S. tobacco Pi price index for imported tobacco et U.S. federal excise tax conp consumer price of cigarettes, including excise tax cpi Consumer Price Index etdiff excise tax, calculated as difference between price index at consumer level and manufacturers' level Pa Advertising price index A Advertising quantity Ext U.S. tobacco exports plus stocks upstrm.rls: Price and quantity data for U.S. tobacco producers Variables: yr Pu Yu vu Xu ru Ku wu Lu Pu Output price index for U.S. tobacco Yu Quantity of U.S. tobacco produced vu input price index for non-capital or land inputs Xu Quantity of non-capital or land inputs ru input price index for capital Ku Quantity of capital wu input price index for labor Lu Quantity of labor downstrm.rls: Price and quantity data for U.S. Cigarette Manufacturers Variables: yr Pd Yd vd Xd rd Kd wd Ld Pt Yt Pd Output price index for cigarettes, excluding excise tax Yd Quantity of cigarette output vd input price index for non-tobacco inputs, excluding labor and capital Xd Quantity for non-tobacco inputs, excluding labor and capital rd input price index for capital/capacity Kd Quantity of capital/capacity wd input price index for labor Ld Quantity of labor Pt price index for domestic tobacco purchases Yt Quantity of domestic tobacco purchases Kellie Curry Raper O: (517) 353-7226 Department of Agricultural Economics F: (517) 432-1800 211C Agriculture Hall raperk@pilot.msu.edu Michigan State University East Lansing, MI 48824-1039